CARNEY: Bank of England will provide £250 billion of new capital to prop up markets

Bank of England governor Mark Carney has moved to try and soothe
the markets, reassuring investors and UK citizens that the Bank
is ready to deal with the "volatility" following the UK's vote to
leave the European Union overnight.

Speaking from the Bank of England on Friday morning, Carney said
that the Bank is "ready to provide more £250 billion
of additional capital to its normal operations." Essentially the
BoE is ready to prop up the UK's financial system to protect it
from the direct impacts of Brexit.

"As a backstop, and to support the functioning of markets,
the Bank of England stands ready to provide more than
£250bn of additional funds through its normal facilities. The
Bank of England is also able to provide substantial liquidity in
foreign currency, if required. We
expect institutions to draw on this funding if and when
appropriate, just as we expect them to draw on their own
resources as needed in order to provide credit, to support
markets and to supply other financial services to the real
economy. In the coming weeks, the Bank will assess economic
conditions and will consider any additional policy responses."

He also hinted at a potential interest rate cut in the next
few weeks. "In the coming weeks the bankwillassess economic conditions and wewillconsider any additional policy responses.
We've taken all the necessary steps to prepare for today's
events."

"Itwilltake some time for the
UK to establish relationships with Europe and the rest of the
world...but we are well prepared for this...The capital
requirements of our largest banks are now 10X higher than before
the financial crisis," he added.

Earlier this morning,
a statement from the Bank read: "The Bank of England is
monitoring developments closely. It has undertaken extensive
contingency planning and is working closely with HM Treasury,
other domestic authorities and overseas central
banks."

Britain's financial markets have responded broadly well to
Carney's comments, with the FTSE 100 climbing a little as Carney
spoke. Here is the chart: